Walgreens Boots Alliance Inc (WBA)
Liquidity ratios
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.68 | 0.65 | 0.66 | 0.66 | 0.63 | 0.63 | 0.63 | 0.70 | 0.75 | 0.78 | 0.74 | 0.83 | 0.72 | 0.77 | 0.83 | 0.69 | 0.67 | 0.69 | 0.66 | 0.66 |
| Quick ratio | 0.33 | 0.27 | 0.28 | 0.26 | 0.25 | 0.26 | 0.27 | 0.32 | 0.33 | 0.39 | 0.32 | 0.41 | 0.31 | 0.19 | 0.19 | 0.30 | 0.28 | 0.29 | 0.29 | 0.28 |
| Cash ratio | 0.12 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.07 | 0.15 | 0.11 | 0.19 | 0.08 | 0.17 | 0.05 | 0.04 | 0.03 | 0.04 | 0.02 | 0.03 | 0.03 | 0.03 |
Over the past few quarters, Walgreens Boots Alliance Inc's liquidity ratios have shown some fluctuations. The current ratio, which measures the company's ability to meet its short-term obligations with its current assets, has ranged between 0.63 and 0.78, with the latest value at 0.68 as of August 31, 2024. This indicates that the company may have some challenges in meeting its short-term liabilities using its current assets.
The quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, has fluctuated between 0.19 and 0.41 over the same period, with the most recent value at 0.33. This indicates that the company may have some difficulty meeting its short-term obligations without relying on inventory.
The cash ratio, which is the most conservative measure of liquidity as it only considers cash and cash equivalents, has fluctuated between 0.02 and 0.19 during the same period, with the latest value at 0.12. This suggests that the company has a relatively low level of cash on hand compared to its current liabilities.
Overall, the liquidity ratios of Walgreens Boots Alliance Inc show some variability over time, with a general trend of lower ratios in recent quarters. This indicates a potential need for the company to closely monitor its liquidity position and take appropriate measures to improve its short-term liquidity in order to meet its financial obligations.
See also:
Walgreens Boots Alliance Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| Aug 31, 2024 | May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 1.67 | 4.81 | 6.24 | 5.07 | 3.40 | 6.00 | 5.54 | 5.94 | 5.94 | 4.73 | 8.27 | 8.01 | 7.17 | 3.22 | 4.57 | 3.79 | 11.15 | 6.80 | 5.66 | 6.56 |
The cash conversion cycle measures how efficiently a company manages its working capital by analyzing the time it takes to convert inventory into cash. For Walgreens Boots Alliance Inc, the cash conversion cycle fluctuated over the past periods, ranging from a low of 1.67 days to a high of 11.15 days.
A lower cash conversion cycle indicates that the company is able to quickly convert its inventory into cash, which is typically seen as a positive sign of good operational efficiency. On the other hand, a higher cash conversion cycle may suggest inefficiencies in managing inventory, accounts receivable, or accounts payable.
Analyzing the trend of Walgreens Boots Alliance Inc's cash conversion cycle over time can provide insights into its working capital management practices and operational efficiency. It is important to closely monitor changes in the cash conversion cycle to assess the company's ability to efficiently utilize its resources and optimize cash flow.